Toshiba 2014 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2014 Toshiba annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

06 TOSHIBA Annual Report 2014
Management's Discussion and Analysis
RESEARCH AND DEVELOPMENT
The Group’s new management policy defines Growth through Creativity and Innovation as the main target, to be
achieved through Value Creation and Productivity Improvements. We have also added Healthcare to Energy and Data
Storage as a core business. In achieving this management policy, in addition to our long-standing promotion of Value
Innovation, which encompasses the unearthing of society’s potential needs and issues and the creation of innovative
technologies, and Process Innovation, the constant productivity improvements that fuel profit creation and strengthen
competitiveness, we will promote New Concept Innovation that utilizes the wide-ranging technology assets of the Group
in many and diverse fields to generate synergies, and create new value for customers.
The Group's overall R&D expenditure reached 329.5 billion yen in the fiscal year ended March 31, 2014. Expenditures for
each business segment were as follows:
Billions of yen
Energy & Infrastructure 64.2
Community Solutions 45.2
Healthcare Systems & Services 31.7
Electronic Devices & Components 147.5
Lifestyle Products & Services 34.8
Others 6.1
CAPITAL EXPENDITURES
CAPITAL EXPENDITURE OVERVIEW
(1) Overview
The Group strongly promotes capital expenditure and investments & loans to accelerate enhancement of its focus
businesses and to establish new profit basis. The Group sets “Shiftable funds”, which enables the Company to make
speedy and flexible decisions of investments in response to change of business environment, and executes strategic
investments.
In the year ended March 31, 2014 as a result of proactive investment in new businesses to achieve growth through
creativity and innovation, the total amount of investment and loan amounted to 415.9 billion yen. In relation to capital
investment, the Group carefully selected projects in fields in which growth is expected, placing importance on efficiency
of investment. Consequently, capital expenditure on ordering basis amounted to 340.2 billion yen, which was 10.2 billion
yen increase from the initial plan, 330.0 billion yen.
The above capital expenditure includes the Group's portion in the investments made by Flash Forward, Ltd. and other
affiliates accounted for by the equity method.
Capital expenditure
(billion yen) (Note 1)
Investments & loans
(billion yen) (Note 2)
Total investments
(billion yen)
Energy & Infrastructure 61.0 29.8 90.8
Community Solutions 28.6 25.6 54.2
Healthcare Systems & Services 11.1 0.8 11.9
Electronic Devices & Components 201.5 19.1 220.6
Lifestyle Products & Services 8.5 0.0 8.5
Others 29.5 0.4 29.9
Total 340.2 75.7 415.9
Notes: 1) Based on ordering basis and includes intangible assets.
2) Based on payment basis.